15 U.S.C. § 9094 — Required assurances
submitted 6 years ago by Pub. L. 116-260 to r/title-15-COMMERCE-AND-TRADE · 746 words · no verdicts yet
The section makes payroll-support eligibility depend on promises about furloughs, pay, stock purchases, dividends, compensation, and employee recalls.
(a) To receive assistance, a passenger air carrier or contractor* must agree with the Secretary*, or certify as the Secretary requires, that it will (1) not involuntarily furlough employees or reduce pay or benefits until March 31, 2021; for a contractor, until that date or until it spends the assistance, whichever is later; (2) ensure that it and its affiliates do not buy listed equity securities of the recipient or its parent through March 31, 2022; for a contractor, through that date or until it spends the assistance, whichever is later; (3) not pay common-stock dividends or make equivalent capital distributions through the same applicable dates; and (4) meet sections 9095 and 9096. (b) The agreement or certification must also require recalls and back pay. (1) A recipient that received CARES Act title IV assistance must, within 72 hours after signing, recall* employees involuntarily furloughed between October 1, 2020 and signing; pay returning employees lost pay and benefits, minus furlough, severance, separation, or similar payments, for the applicable period beginning December 1, 2020 for carriers or December 27, 2020 for contractors; and restore their rights and protections as if they had not been furloughed. (2) A recipient that received no such CARES Act assistance must, within 72 hours after signing, recall employees furloughed between March 27, 2020 and signing; pay lost pay and benefits, with the same offsets, for the same applicable periods; and restore their rights and protections. “Recall” and “returning employee*” have the meanings in section 9091; this section does not redefine them.
To be eligible for financial assistance under this part, a passenger air carrier or a contractor* shall enter into an agreement with the Secretary*, or otherwise certify in such form and manner as the Secretary shall prescribe, that the passenger air carrier or contractor shall—
refrain from conducting involuntary furloughs or reducing pay rates and benefits until—
with respect to passenger air carriers, March 31, 2021; or
with respect to contractors, March 31, 2021, or the date on which the contractor expends such financial assistance, whichever is later;
ensure that neither the passenger air carrier or contractor nor any affiliate of the passenger air carrier or contractor may, in any transaction, purchase an equity security of the passenger air carrier or contractor or the parent company of the passenger air carrier or contractor that is listed on a national securities exchange through—
with respect to passenger air carriers, March 31, 2022; or
with respect to contractors, March 31, 2022, or the date on which the contractor expends such financial assistance, whichever is later;
ensure that the passenger air carrier or contractor shall not pay dividends, or make other capital distributions, with respect to common stock (or equivalent interest) of the air carrier or contractor through—
with respect to passenger air carriers, March 31, 2022; or
with respect to contractors, March 31, 2022, or the date on which the contractor expends such financial assistance, whichever is later; and
meet the requirements of sections 9095 and 9096 of this title.
An agreement or certification under this section shall require a passenger air carrier or contractor to perform the following actions:
In the case of a passenger air carrier or contractor that received financial assistance under title IV of the CARES Act [15 U.S.C. 9041 et seq., 9071 et seq.] —
recall* (as defined in section 9091 of this title), not later than 72 hours after executing such agreement or certification, any employees involuntarily furloughed by such passenger air carrier or contractor between October 1, 2020, and the date such passenger air carrier or contractor enters into an agreement with the Secretary with respect to financial assistance under this part;
compensate returning employees for lost pay and benefits (offset by any amounts received by the employee* from a passenger air carrier or contractor as a result of the employee’s furlough, including, but not limited to, furlough pay, severance pay, or separation pay) between—
in the case of a passenger air carrier, December 1, 2020, and the date on which such passenger air carrier enters into an agreement with the Secretary with respect to financial assistance under this part; or
in the case of a contractor, December 27, 2020, and the date on which such contractor enters into an agreement with the Secretary with respect to financial assistance under this part; and
restore the rights and protections for such returning employees as if such employees had not been involuntarily furloughed.
In the case of a passenger air carrier or contractor that did not receive financial assistance under title IV of the CARES Act [15 U.S.C. 9041 et seq., 9071 et seq.] to—
recall (as defined in section 9091 of this title), within 72 hours after executing such agreement or certification, any employees involuntarily furloughed by such passenger air carrier or contractor between March 27, 2020, and the date such passenger air carrier or contractor enters into an agreement with the Secretary for financial assistance under this part;
compensate returning employees under this paragraph for lost pay and benefits (offset by any amounts received by the employee from a passenger air carrier or contractor as a result of the employee’s furlough, including, but not limited to, furlough pay, severance pay, or separation pay) between—
in the case of a passenger air carrier, December 1, 2020, and the date such passenger air carrier enters into an agreement with the Secretary for financial assistance under this part; or
in the case of a contractor, December 27, 2020, and the date on which such contractor enters into an agreement with the Secretary with respect to financial assistance under this part; and
restore the rights and protections for such returning employees as if such employees had not been involuntarily furloughed.
Source credit: (Pub. L. 116–260, div. N, title IV, § 404, Dec. 27, 2020, 134 Stat. 2055.)
- 2020Enacted · Pub. L. 116-260 · 134 Stat. 2055
A history note hasn’t been published yet. The record shows enactment by Pub. L. 116-260 on 2020-12-27.
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